Jim Cramer Sees Opportunity in Pessimism and Highlights These 12 Stocks

8. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund holders: 62

Caterpillar Inc. (NYSE:CAT) was brought up as the company’s retiring CEO rang the opening bell in celebration of its 100th anniversary. Jim Cramer praised the CEO Jim Umpleby for transforming Caterpillar from a cyclical China-dependent business into a consistent, secular growth story and a net exporter. Here are his thoughts:

“Well, look, this fabulous company that’s ringing the bell today, Caterpillar, net exporter, which is what we want to encourage, right? But would you find, if someone at the end of the day said, we’re going to look into Caterpillar, would that shock you? […]

[Talking about the company’s retiring CEO] The stock’s down 18% this year, which is really, unfortunately, not representative of what he’s done. And I don’t know Joe Creed who’s coming in, but when Jim came in, Caterpillar was regarded as being episodic. And now, not only is it not in their earnings, now it was consistent. He bought back stock. He made it so it was no longer a China play, which was so long the worry. He’s just a great man. And I’m just so thrilled for Jim. Fabulous guy. Really understands, I think, the way to make it so that finally Caterpillar broke out of Episonic. When I first met him, Mike Worth introduced me to him from Chevron, and he said, I’m going to make this company so it’s not cyclical. […] And he did it. He did it. And there’s the long-term chart. And you can see that it just did well in COVID times, did well in downturns, because that’s who he is. He really figured out a way to buy back stock and change the way inventories included. David, look at that. This is an episodic, turned into a secular grower. And we were joking this morning about when Goldman downgraded it to 68 to put it to a selling. This thing never quits. And Jim probably never quits working. And he is a remarkable man in terms of what he’s done with his company. It’s worth pointing it out because, wow. Without a doubt, that is quite a move. That is a non-cyclical chart. And because he turned it into a secular grower, no longer hostage to China. And that’s why I say he’s a net exporter.”